Russia May Have Generated 50 Billion Rubles from $3 Billion BTC Mined in 2023

Crypto operations in Russia have recently undergone significant changes, and the government’s move to legitimize cryptocurrency activities is set to further strengthen the industry. In 2023 alone, Russian miners produced approximately 54,000 Bitcoin, valued at around $3 billion. This information was shared by Sergey Bezdelov, Director of Russia’s Industrial Mining Association, and reported by Izvestia media. Bezdelov noted that the Russian government may have generated around 50 billion rubles in taxes from these mining activities.

Speaking at the 2024 Eastern Economic Forum, Bezdelov emphasized that now that crypto mining is a legalized economic activity, the Russian government can maximize tax revenues from this sector. He also highlighted that crypto mining could serve as a strategic buffer for the nation amidst ongoing economic sanctions, potentially attracting more investors.

The decision to legalize crypto mining in Russia may have been influenced by the significant milestone achieved in Bitcoin mining during the previous year.

The newly enacted cryptocurrency law brings two key changes. First, as of November 1, 2024, crypto mining will be officially recognized as a legal economic activity in Russia. Two crypto exchanges have already been established in Moscow and St. Petersburg, indicating a swift embrace of the opportunities presented by the burgeoning crypto industry.

Secondly, the new regulation requires that crypto exchange activities be conducted exclusively by licensed firms, authorized by Russia’s central bank. Although this provision is still in an experimental phase, individuals or entities, whether as legal institutions or private persons, can proceed with Bitcoin mining after registering with the Russian Ministry of Defence.

As the central bank works to navigate the complexities of the crypto ecosystem, it will conduct three primary tests: regulating crypto exchanges, using cryptocurrencies to facilitate foreign trade payments, and developing a digital platform to support crypto operations.